Filing Flows › Karat Packaging (KRT) › Q1 2026
Karat Packaging (KRT) Q1 2026 earnings results (first quarter 2026)
10-Q filed May 8, 2026
Karat Packaging (KRT) reported revenue of $117M for the first quarter 2026 (Q1 2026), +13% from a year earlier and +1% from the quarter before. Operating margin was 7.2%, net earnings $6.7M (5.8% of revenue).
Karat Packaging, Q1 2026: revenue $117M (+13% year over year), operating margin 7.2%, net earnings $6.7M, operating cash flow $7.2M. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $117M | +1% | +13% |
| Gross profit | $41.5M | +6% | +2% |
| Operating profit | $8.5M | -0.1% | +8% |
| Net earnings | $6.7M | -1% | +5% |
| Operating cash flow | $7.2M | -53% | -7% |
| Free cash flow | $6.3M | — | — |
What changed
Revenue was $116.9M in Q1 2026, up 13% year over year and up 1% from the previous quarter. Chains and distributors was the largest line at 79% of revenue. Chains and distributors added $12.2M year over year (up 15%), 92% of the total change. Retail declined 12%.
Gross margin was 35.5%, down 3.8 points from Q1 2025. Operating profit was $8.5M, a 7.2% margin (down 0.3 points year over year). Of the extra revenue versus Q1 2025, 5% reached operating profit, below the 8% margin then. Operating expenses grew 0% against revenue growth of 13%. Net earnings were $6.7M, up 5% year over year. The effective tax rate was 23.9%.
Operating cash flow was $7.2M (down 7% year over year), 101% of net income including minority interests. Non-cash charges added back $2.7M of depreciation and amortization and $242K of share-based compensation. Working capital and other items used $2.9M. After purchase of property and equipment ($565K) and deposits paid for property and equipment ($333K), free cash flow as the company reports it was $6.3M.
Questions
What was Karat Packaging's revenue in the first quarter 2026?
Karat Packaging (KRT) reported revenue of $117M for the first quarter 2026 (Q1 2026), +13% from a year earlier and +1% from the quarter before.
Was Karat Packaging profitable in the first quarter 2026?
Operating profit was $8.5M (7.2% of revenue) and net earnings $6.7M.
Source: Karat Packaging 10-Q on SEC EDGAR.